Cost vs. Investment in SAP Projects

“We need to move off SAP ECC, but we can’t justify the cost.” My CEO friend from Harvard Business School told me this last week. And she’s not wrong. Migration quotes often look scary because many SAP projects: ⚠️ Take years with runaway budgets. ⚠️ Have consultants billing endlessly without clear outcomes. ⚠️ Burn out teams testing the same processes on repeat. But why do SAP migrations become so expensive? Here’s the truth: Most SAP migrations fail the moment they’re scoped. 🛑 They scope everything instead of what matters. ➡️ Every custom report, even if no one uses it. ➡️ Every process variant, even if it’s an edge case. ➡️ Every piece of dirty data, without cleaning it first. This isn’t transformation. It’s expensive duplication. A smart SAP migration is different. It’s a business simplification project disguised as a technical upgrade. If you want to control your migration costs, here’s how: ✅ 1️⃣ Migrate only what you need. Your ECC likely has 20 years of custom code, unused reports, and workarounds that no longer serve you. S/4HANA is your chance to reset, not replicate. ✅ 2️⃣ Fix your data before you migrate. Dirty data multiplies your testing cycles and post-go-live headaches. Good data shrinks timelines, reduces consultant hours, and improves user trust. ✅ 3️⃣ Prioritize the 20% that runs 80% of your business. You don’t need to perfect every exception on day one. Get your core revenue-driving processes live, then iterate. ✅ 4️⃣ Pick a partner who says ‘no’. You need a partner who challenges scope bloat, not one who says yes to everything to grow billable hours. 🚩 Here’s what most never calculate: the cost of staying stuck. – The revenue lost because quotes take days, not hours. – The manual reconciliations your team does every month. – The friction your customers feel because your processes can’t keep up. You’re already paying a hidden cost every day you stay on ECC. You just don’t see the invoice. The difference between an expensive SAP migration and a smart one isn’t technology. It’s strategy. If migration costs are holding you back, maybe it’s time to ask: “Are we planning a migration, or are we copying our problems into a new system?” How are you thinking about controlling cost when you move off SAP ECC? #SAP #S4HANA #SAPMigration #DigitalTransformation #Leadership #CIO #CEO #EnterpriseIT #CloudERP #BusinessTransformation #SAPCommunity #ASARDigital #ERP

𝐓𝐡𝐞 𝐇𝐢𝐝𝐝𝐞𝐧 𝐂𝐨𝐬𝐭𝐬 𝐨𝐟 𝐂𝐡𝐨𝐨𝐬𝐢𝐧𝐠 𝐭𝐡𝐞 𝐂𝐡𝐞𝐚𝐩𝐞𝐬𝐭 𝐒𝐀𝐏 𝐈𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 𝐏𝐚𝐫𝐭𝐧𝐞𝐫 A few years ago, a senior IT executive at a leading German automotive OEM told me something that still rings true today: “𝐼𝑛 𝑒𝑣𝑒𝑟𝑦 𝑆𝐴𝑃 𝑖𝑚𝑝𝑙𝑒𝑚𝑒𝑛𝑡𝑎𝑡𝑖𝑜𝑛 𝑅𝑓𝑃, 𝑡ℎ𝑒𝑟𝑒’𝑠 𝑎𝑙𝑤𝑎𝑦𝑠 𝑎𝑡 𝑙𝑒𝑎𝑠𝑡 𝑜𝑛𝑒 𝑏𝑖𝑑𝑑𝑒𝑟 𝑤ℎ𝑜 𝑑𝑜𝑒𝑠𝑛’𝑡 𝑔𝑟𝑎𝑠𝑝 𝑡ℎ𝑒 𝑝𝑟𝑜𝑗𝑒𝑐𝑡’𝑠 𝑐𝑜𝑚𝑝𝑙𝑒𝑥𝑖𝑡𝑦. 𝐼𝑟𝑜𝑛𝑖𝑐𝑎𝑙𝑙𝑦, 𝑡ℎ𝑎𝑡 𝑠𝑎𝑚𝑒 𝑏𝑖𝑑𝑑𝑒𝑟 𝑢𝑠𝑢𝑎𝑙𝑙𝑦 𝑠𝑢𝑏𝑚𝑖𝑡𝑠 𝑡ℎ𝑒 𝑐ℎ𝑒𝑎𝑝𝑒𝑠𝑡 𝑜𝑓𝑓𝑒𝑟.” This anecdote highlights a common pitfall: partners who underestimate the intricacies of an SAP project often present overly optimistic pricing. While a rock-bottom bid can look tempting, the hidden costs quickly surface: cost overruns, missed deadlines, and outcomes that fail to meet business objectives - because they lack the team of experts and specialists for the job. Those cost money. Rather than chasing the lowest price, focus on the partner’s depth of expertise, proven track record, and ability to align with your organization’s goals. These factors are the real difference-makers in achieving a successful SAP implementation. Investing in the right partnership today saves far more time, money, and headache in the long run. #sap #sappartner #consulting #saps4hana

The cheapest ERP project usually turns out to be the most expensive mistake. Here’s how to avoid it. When cost is the primary driver in an ERP conversation, we know it’s time to step back. ERP is either an expense or an investment. And how you see it changes everything. If you’re asking, “How little can we spend to get this done?” You’re approaching ERP like a cost to minimize. But if you’re asking, “How do we make a smart investment that scales the business for the next 10–15 years?” Now we’re having a real conversation. One approach tries to spend as little as possible, then wonders why growth stalls. The other builds a platform for scale, efficiency, and competitive advantage. Budget matters. Cost discipline matters. But if your first priority is “cheap,” you’re not thinking about transformation You’re thinking about survival. ERP done right isn’t an expense. It’s the infrastructure that carries your business through its next decade of growth. --- I’m Ralph Hess, 40-year industry veteran VP of Sales & Marketing at Navigator Business Solutions Follow me for real ERP stories, practical insights, and how to grow smarter with SAP. #ERP #CloudERP #SAPS4HANA #GROWwithSAP